Special Topics

Total business inventories increased 0.4% in December (3.2%
y/y), the same as during their unrevised November reading. Total business sales
gained 0.6% (6.7% y/y) after a 1.4% rise, revised from 1.2%. The changes in
inventories and sales left the inventory/sales ratio steady at 1.33, the lowest
level since November 2014.

The inventory-to-sales ratio in the retail sector rose to 1.43.
That left the ratio at its lowest point, however, in three years, down sharply
from the 1.49 August high. The nonauto I/S ratio also ticked up to 1.21, but
remained near its lowest level since early-2012. The wholesale sector I/S ratio
eased to 1.22, the lowest point in three years. In the manufacturing sector, the
I/S ratio held steady at 1.35, also its lowest point in three years.